Expert Urges FG to Contain Insecurity to Lower Food Inflation in Coming Months

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A financial analyst, Mr Johnson Chukwu, has appealed to  the Federal Government to urgently subdue insurgency  in parts of the country so as to drastically lower food inflation in coming months.

Chukwu, the Managing Director of the Cowry Asset Management Ltd., Lagos, gave the suggestion in an interview with the newsmen on Wednesday in Lagos.

Chukwu was reacting to the National Bureau of Statistics (NBS) inflation figures for December , which increased to 11.44 per cent from 11.28 per cent.

He said that except the issue of insecurity, especially in the northeast zone of the country was checked, food inflation might continue in the subsequent months.

The expert said that the issue of insecurity remained one of the many factors responsible for higher food inflation in the country.

Chukwu said that this  had contributed to an  increase in the food inflation and might be sustained in the the subsequent months.

“We all know that  a lot of liquidity has been  injected into  the economy.

“Although, this might be as a result of political activities, but beyond that, insecurity in the north eastern part of the country has been  a major factor driving food inflation.

“So, this pressure is likely to be sustained in the next couple of months because of the displacing of farmers from their farmlands.

“Until that is reversed and which cannot be done overnight, the pressure on food inflation will continue because food inflation is a component of the Consumer Price Index (CPI),” Chukwu said.

Enterprise network earlier reported  that the inflation rate for December 2018 as released by NBS on Tuesday in Abuja showed that it  was driven by higher prices of food, especially, in Abuja, Bayelsa and Nasarawa states.

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